Nov 17, 2020|
JD Q3 2020 Earnings: Putting Consumers Front-and-Center Brings Strong User Growth to JD
by Hui Zhang
JD.com’s unwavering efforts in always positioning consumers at the center of its business have been reflected in its user growth. JD’s annual active customers reached 441.6 million by the end of the third quarter, 32% up from a year ago. This is the highest annual growth rate in the past three years. On the Nov. 16 earnings call to discuss the results, JD’s management team attributed the strong growth to the strength of its supply chain and services, both of which have made JD a highly trusted platform, as well as improved user engagement in lower tier markets.
Sandy Xu, CFO of JD.com shared that the company obtained more than 24 million net additional customers in the third quarter. The robust growth of the number of active users validates the company’s long-term operating philosophy to put its customers at the center of its business. Eighty percent of JD’s new users this quarter came from lower-tier c markets.
Core users on JD were found to buy products from more categories and more frequently, making JD an important part in consumers’ daily lives. The number of JD PLUS members exceeded 20 million in October, a milestone for its paid membership program. JD PLUS was the first paid e-commerce membership program in China designed to better serve its core users besides the benefits offered on JD app such as shopping rebates and free shipping coupons. JD PLUS has partnered with over 600 industry-leading brands to provide its members with comprehensive privileges in sectors such as movie tickets, travel, hotel bookings, education, dining and entertainment. JD’s data shows that JD PLUS has effectively improved the engagement and retention of its core users.
Lei Xu, CEO of JD Retail explained, “For the new users, they’ve already been educated and have been calibrated through other platforms. When they become more mature and more customized online shoppers, they will shift to a platform that can provide better services for them.” He added: “ We have a better competitiveness to match the shopping behavior for more and more customers.”
Nov 7, 2024|
CIIE 2024: JD.com to Expand Imports of Specialty Brands, Strengthen Healthcare Partnerships, and Enhance Logistics
At the 7th China International Import Expo (CIIE) on November 5, JD Super, the supermarket division of JD.com, announced a major initiative to broaden its selection of imported specialty. Over the next three years, JD Super plans to introduce over 1,000 new international brands to meet the increasing demand for high-quality, diverse imported goods.
Meeting the Growing Demand for Quality Imports
According to JD Worldwide’s “White Paper on 2024 China Cross-Border Consumption Trends,” more than 80% of Chinese consumers are interested in imported products, with many prioritizing authenticity, quality, and fast delivery. In response, JD has significantly expanded its range of international offerings. During the ongoing Singles’ Day Grand Promotion, sales of cross-border products have surged, with more than 600 brands experiencing a sales increase of over 100% compared to last year.
Strengthening High-Quality Food Partnerships
Demonstrating JD.com’s commitment to sourcing high-quality products, JD Super signed a new procurement agreement at CIIE with Huadong Foods and Teys, a major Australian beef brand under Cargill. Under this agreement, JD Super and Huadong Foods will procure $50 million of Teys beef throughout 2025. This partnership underscores JD’s strategy of collaborating with trusted suppliers to provide high-quality, affordable beef to Chinese consumers.
Delivering Authentic Global Goods Efficiently
JD Logistics has built a robust logistics network that spans bonded, direct mail, and overseas warehouses, facilitating fast deliveries of imported items across categories such as electronics, fashion, beauty, food, and baby products. In many major cities, delivery times have been reduced to under 48 hours.
For instance, JD Super’s partnership with Raub of Malaysia enables the import of Musang King durians, which are harvested at peak ripeness and air-shipped with cold chain logistics for delivery within 24 hours. Additionally, JD.com also secured an early supply of Chilean cherries, available since October, which can be delivered in as little as 30 minutes in many areas through JD NOW, its on-demand retail service.
JD.com’s “JD National Pavilions” program, which features over 150 country-themed flagship stores from more than 70 countries and regions, continues to be a cornerstone of its import strategy. Supported by embassies and reputable organizations, this initiative offers Chinese consumers access to premium products and cultural experiences from around the world. In April, JD launched the JD National Pavilion of Mali, introducing popular items like shea butter and garnering over 40,000 followers.
Expanding Healthcare and Logistics Partnerships
JD Health is also making strides at CIIE by strengthening partnerships with leading global healthcare companies, including Merck, Bayer, and Roche. As “China’s premier online health access point,” JD Health is committed to integrating digital and physical healthcare resources to improve access and convenience for patients.
Key collaborations include initiatives with Haleon to promote brain health and anti-aging for the “silver economy,” with MSD China on a digital diabetes management model, and with Teva Pharmaceuticals to provide patient education for conditions such as tardive dyskinesia (TD) and Huntington’s disease (HD).
On the logistics front, JD Logistics announced plans to double its overseas warehouse space by 2025 and expand its network of bonded and direct mail warehouses. JD Express now serves over 60 countries, enhancing cross-border delivery efficiency and supporting both brands and consumers.
Through these efforts, JD.com reaffirms its commitment to sourcing and delivering authentic, high-quality imported products to Chinese consumers, supported by an advanced supply chain that ensures a superior shopping experience.
(vivian.yang@jd.com)
JD Q3 2020 Earnings: The “35-Cents Theory”, JD’s Business Principle with its Partners and Employees
